Retail vacancy drops 1.5% YTD: JLL

Vacancy rates remained stable despite weaker space demand.

Retail vacancy dropped 1.5% year-to-date (YTD) in 2025, according to JLL. 

Combined with landlords’ proactive asset management, this supported quarter-on-quarter (QoQ) retail rent growth across the three submarkets in Q1 2025.

However, the consolidation of weak-performing stores and the departure of retail brands from Singapore across selected malls led to a decline in space demand in Q1 2025. 

Meanwhile, continuous tourism growth, active MICE activities, healthy workforce footfall, and sustained domestic consumption helped sustain demand for retail space in the broader market.

According to JLL, Singapore’s appeal as a business hub for regional expansion, domestic consumption, and tourism growth is expected to spur retail expansion, keeping vacancy rates low amid moderate supply and supporting rent growth.

In addition, JLL expects rent growth to drive capital value growth, with yields likely to remain stable, supporting investors seeking a yield spread over funding costs in an elevated interest rate environment.